I think that is a fine description of the backing of the US Dollar.
For Bitcoin though, it sounds like you are defending Bitcoin as an investment, which I don't agree with. Unlike Bitcoin, the US Dollar is not considered an investment. It's just a currency, a medium of exchange. It loses some value over time, and we're ok with that. Bitcoin is pretty difficult to use as a currency, so people usually promote it as an investment instead.
Here is what I have to say about it as an investment: where is the money actually coming from for the returns? In order for the price to keep going up, people have to keep adding more money to the pool. This is pretty clearly a negative sum game, where the players on average must lose more than they win. Some people may win, but they are mathematically in the minority. Most people who appear to be winning are only winning on paper right now. If everyone who was currently holding tried to withdraw their money and cash out, who would be the ones buying them out? It's not clear. There is no utility to the thing that they own. It's essentially just a number in a spreadsheet.
For Bitcoin though, it sounds like you are defending Bitcoin as an investment, which I don't agree with. Unlike Bitcoin, the US Dollar is not considered an investment. It's just a currency, a medium of exchange. It loses some value over time, and we're ok with that. Bitcoin is pretty difficult to use as a currency, so people usually promote it as an investment instead.
Here is what I have to say about it as an investment: where is the money actually coming from for the returns? In order for the price to keep going up, people have to keep adding more money to the pool. This is pretty clearly a negative sum game, where the players on average must lose more than they win. Some people may win, but they are mathematically in the minority. Most people who appear to be winning are only winning on paper right now. If everyone who was currently holding tried to withdraw their money and cash out, who would be the ones buying them out? It's not clear. There is no utility to the thing that they own. It's essentially just a number in a spreadsheet.